Illinois Senate Mulls Bills that Would Enhance Education Sector Coverage

Legislation is before the Illinois Senate that would expand coverage and options available to certain employees in the education sector. 

SB 1647

On Feb. 8, Sen. Robert F. Martwick (D-Chicago) introduced SB 1647, a bill that would amend the Downstate Teacher Article of the Illinois Pension Code. 

The Illinois Pension Code includes a provision that requires the Illinois Public Employee Benefits System to automatically enroll certain employees in its defined contribution plan. However, school districts may offer an alternative qualifying plan; accordingly, the Pension Code contains an exception for employees of those school districts. 

SB 1647: 

• provides that the alternative qualifying plan shall abide by the automatic enrollment procedures and automatic increase in contribution provisions applicable to the system's DC benefit; 
• sets forth additional requirements for those alternative qualifying plans; and 
• requires a school district that has an alternative qualifying plan to file a letter of compliance, passed by a resolution of the relevant school board, with the system. 

The bill would be effective immediately upon enactment. 

S. B. 1647 has been referred to the Senate Assignments Committee.

SB 1233 

On Feb. 22, Sen. Michael W. Halpin (D-Rock Island) introduced SB 1233, a bill that would amend the School Code to provide that school districts that make a 457 plan available to their employees would have to make available to participants at least four financial institutions or investment providers that have not entered into a written agreement and that provide services to the school district's 457 plan. 

Any such 457 plan would be required to:

• enter into an agreement with the school district or its independent compliance administrator that requires the financial institution or investment provider to furnish, in electronic format, all data necessary for the administration of the plan; 
• provide all data required by the school district or its independent compliance administrator to facilitate disclosure of all fees, charges, expenses, commissions, compensation and payments to third parties related to investments offered under the 457; and 
• cover all plan administration costs agreed to by the school district. 

SB 1233 was referred to the Senate Special Committee on Pensions. 

Finding out More

More information is available about S. 1647 here. 

More information is available about S. 1233 here.